Oil and Gas Regulatory Authority (OGRA) has recommended Rs 8.50 per litre increase in the price of petrol and Rs 5.5 per litre in the price of high-speed diesel.
The authority forwarded a summary to the Petroleum Division in which it suggested increasing the price of petrol by Rs 8.50 per litre from for next 15 days.
The final decision in this regard will be taken by the Ministry of Finance after consultation with Prime Minister Imran Khan.
Previously, Finance Minister Shaukat Tarin also indicated a hike in domestic petroleum prices from mid of February, while also emphasizing that the government cannot artificially reduce petroleum product costs.
Shaukat Tarin said in an interview with a private news channel that the International Monetary Fund (IMF) expects us to eliminate the tax benefits from the provident fund, which will put a burden on the poor.
Hence, the government will negotiate with the IMF on a tax exemption for provident funds.
He also stated that the IMF is opposed to the fertilizer industry receiving a gas subsidy.
Read more: Latest prices of petroleum products in Pakistan
Due to the increase in worldwide petroleum costs, Tarin strongly opposed the idea of artificially lowering fuel prices.
He stated that the price of petroleum items in the country cannot be artificially reduced. If prices rise on the international market, the government will have to pass the cost on to the people.
He also expressed reservations about supporting the government’s decision to keep petroleum prices steady for the first 15 days of February, claiming that while the move is appealing, it will not last.
Previously, Special Assistant to the Prime Minister on Political Communication Shahbaz Gill said on January 31 that the prime minister did not approve the summary of boosting fuel prices by Rs 11 and diesel prices by Rs 14, which OGRA had proposed.
As a result, for the first 15 days of February 2021, the government has agreed not to raise petroleum product prices.